CGT - Did you dispose of chargeable assets worth more than £48,000?

ScreamingLordCrutch

The above question is in the Self Assessment form CGT section. 

I understand that if the gains over over £12,000 then it needs to be declared, but what's the significance of the £48,000?  

Jeremy535897

It gives them an opportunity to look at all larger transactions to see whether there really is no gain above the annual exemption.

ScreamingLordCrutch

But surely any Capital Gain over £12,000 needs to have taxed charged on it and looked at?  Is the £48,000 figure arbitrary, or a coincidence it's 400% of £12,000?

p00hsticks

ScreamingLordCrutch said:

But surely any Capital Gain over £12,000 needs to have taxed charged on it and looked at?  Is the £48,000 figure arbitrary, or a coincidence it's 400% of £12,000?

It's not a coincidence.

Yes, you need to pay tax on any CGT over your allowance, but you only need to complete a self-assessment if it's over four times the allowance.

https://www.gov.uk/capital-gains-tax/work-out-need-to-pay

Jeremy535897

ScreamingLordCrutch said:

But surely any Capital Gain over £12,000 needs to have taxed charged on it and looked at?  Is the £48,000 figure arbitrary, or a coincidence it's 400% of £12,000?

You have to report all gains if your gains exceed the annual exemption.
You also have to report all disposals with values over £48,000, whether the gain is covered by the annual exemption or not. See the notes to SA108. You only need to meet one of these conditions to be caught:
"Fill in the ‘Capital gains summary’ pages if:
• you sold or disposed of chargeable assets which were worth more than £48,000
 • your chargeable gains before taking off any losses were more than £12,000 (‘annual exempt amount’)
 • you have gains in an earlier year taxable in this period
• you want to claim an allowable capital loss or make a capital gains claim or election for the year
• you were not domiciled in the UK and are claiming to pay tax on your foreign gains on the remittance basis
• you’re chargeable on the remittance basis and have remitted foreign chargeable gains of an earlier year"

ScreamingLordCrutch

Jeremy535897 said:

ScreamingLordCrutch said:

But surely any Capital Gain over £12,000 needs to have taxed charged on it and looked at?  Is the £48,000 figure arbitrary, or a coincidence it's 400% of £12,000?

You have to report all gains if your gains exceed the annual exemption.
You also have to report all disposals with values over £48,000, whether the gain is covered by the annual exemption or not. See the notes to SA108. You only need to meet one of these conditions to be caught:
"Fill in the ‘Capital gains summary’ pages if:
• you sold or disposed of chargeable assets which were worth more than £48,000
 • your chargeable gains before taking off any losses were more than £12,000 (‘annual exempt amount’)
 • you have gains in an earlier year taxable in this period
• you want to claim an allowable capital loss or make a capital gains claim or election for the year
• you were not domiciled in the UK and are claiming to pay tax on your foreign gains on the remittance basis
• you’re chargeable on the remittance basis and have remitted foreign chargeable gains of an earlier year"

Absolutely - I understand it and if I sold assets of 12,001 with no losses to offset, I'd need to declare. Just wondering where £48,000 came in as it seems to be a figure plucked out of the thin air of HMRC HQ. And indeed it is.

Jeremy535897

Well, if you're really that fussed...

If a person has been issued with a notice to file a personal return under TMA 1970, s. 8 or a trustee’s return under TMA 1970, s. 8A , the person is not required to complete the capital gains pages of their tax return if:

•the amount of chargeable gains (before taking off any losses) does not exceed the person’s annual exempt amount under TCGA 1992, s. 1K ;

•the total amount or value of the consideration for all ‘chargeable disposals’ of assets made by the person in the year does not exceed four times the annual exempt amount; and

•the person is not a ‘remittance-basis individual’ for the year.

Instead the person need only make a statement confirming that the above three conditions have been satisfied ( TMA 1970, s. 8C (as inserted by FA 2019, s. 13 and Sch. 1, para. 22 from 2019-20 and prior to that by old TCGA 1992, s. 3A )).

ScreamingLordCrutch

Jeremy535897 said:

Well, if you're really that fussed...

If a person has been issued with a notice to file a personal return under TMA 1970, s. 8 or a trustee’s return under TMA 1970, s. 8A , the person is not required to complete the capital gains pages of their tax return if:

•the amount of chargeable gains (before taking off any losses) does not exceed the person’s annual exempt amount under TCGA 1992, s. 1K ;

•the total amount or value of the consideration for all ‘chargeable disposals’ of assets made by the person in the year does not exceed four times the annual exempt amount; and

•the person is not a ‘remittance-basis individual’ for the year.

Instead the person need only make a statement confirming that the above three conditions have been satisfied ( TMA 1970, s. 8C (as inserted by FA 2019, s. 13 and Sch. 1, para. 22 from 2019-20 and prior to that by old TCGA 1992, s. 3A )).

Oh wow - well I'm not that fussed 

Jeremy535897

ScreamingLordCrutch said:

Jeremy535897 said:

Well, if you're really that fussed...

If a person has been issued with a notice to file a personal return under TMA 1970, s. 8 or a trustee’s return under TMA 1970, s. 8A , the person is not required to complete the capital gains pages of their tax return if:

•the amount of chargeable gains (before taking off any losses) does not exceed the person’s annual exempt amount under TCGA 1992, s. 1K ;

•the total amount or value of the consideration for all ‘chargeable disposals’ of assets made by the person in the year does not exceed four times the annual exempt amount; and

•the person is not a ‘remittance-basis individual’ for the year.

Instead the person need only make a statement confirming that the above three conditions have been satisfied ( TMA 1970, s. 8C (as inserted by FA 2019, s. 13 and Sch. 1, para. 22 from 2019-20 and prior to that by old TCGA 1992, s. 3A )).

Oh wow - well I'm not that fussed 

Of course it's £49,200 for 2020/21.